Part I Capital gains tax and corporation tax on chargeable gains
Capital gains tax
4 Rates of capital gains tax.
1
F31AA
The rate of capital gains tax in respect of gains accruing to—
a
the trustees of a settlement, or
b
the personal representatives of a deceased person,
in a year of assessment shall be equivalent to the rate which for that year is F6the rate applicable to trusts under section 686 of the Taxes Act.
F101AB
If (after allowing for any deductions in accordance with the Income Tax Acts) an individual has no income for a year of assessment or his total income for the year is less than the starting rate limit, then—
a
if the amount on which he is chargeable to capital gains tax does not exceed the unused part of his starting rate band, the rate of capital gains tax in respect of gains accruing to him in the year shall be equivalent to the starting rate;
b
if the amount on which he is chargeable to capital gains tax exceeds the unused part of his starting rate band, the rate of capital gains tax in respect of such gains accruing to him in the year as correspond to the unused part shall be equivalent to the starting rate.
1AC
The references in subsection (1AB) above to the unused part of an individual’s starting rate band are to the amount by which the starting rate limit exceeds his total income (as reduced by any deductions made in accordance with the Income Tax Acts).
F71A
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F71B
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2
If income tax is chargeable at the higher rate F1or the Schedule F upper rate in respect of any part of the income of an individual for a year of assessment, the rate of capital gains tax in respect of gains accruing to him in the year shall be equivalent to the higher rate.
3
If no income tax is chargeable at the higher rate F2or the Schedule F upper rate in respect of the income of an individual for a year of assessment, but the amount on which he is chargeable to capital gains tax exceeds the unused part of his basic rate band, the rate of capital gains tax on the excess shall be equivalent to the higher rate of income tax for the year.
F83A
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F83B
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4
The reference in subsection (3) above to the unused part of an individual’s basic rate band is a reference to the amount by which F9... the basic rate limit exceeds his total income (as reduced by any deductions made in accordance with the Income Tax Acts).